Anyone who finds the current level of advertising on the Internet and in video games to be irritating, may want to consider joining a monestary. In a new study by the American Advertising Federation, nearly 90% of all American companies that were polled said that they were planning on using part of their advertising budget on new media. Now that they can eliminate the middle man, is this the beginning of the end for game magazines?
According to Reuters, the study showed that 73% of executives polled were planning on spending around 1/5th of their ad budget on new media “to advertise in new media like video games or virtual communities.” Though at a much lower percentage, some were even planning on spending around 40% of their ad money. In another interesting statistic, the two most “surprising innovations of the past year as the ‘rush to Second Life virtual community space‘ and ‘the rise of YouTube,’ the video sharing Web site.”
Oddly enough, even though it’s great news for Internet outlets and game publishers, that budget has to be shifted from somewhere, and those most heavily hit will be magazines, TV and newspapers. Among those polled, newspaper was declared the most in need of work, but any format that’s losing advertising isn’t feeling too good. We’ve recently seen the death of the Official Playstation Magazine, other magazines are feeling the effect. As media keeps advancing, information is more readily available and faster. When that happens, older formats fall by the wayside, and just maybe it’s print’s time. Only time will tell.